Photo: Carol Yepes/Getty Images
New York-based Sword Health, which offers physical therapy programs for pelvic health and muscle and joint pain, has acquired Kaia Health, maker of digital therapeutics for musculoskeletal care and COPD, in a deal valued at $285 million.
Sword Health offers a platform with physical health education and resources, pain-fighting exercises and access to clinical pain specialists.
Its offerings include Mind, a platform that pairs AI with mental health specialists to offer 24/7 care, and its M-band, a proprietary wearable device that can detect early indicators of depression and anxiety.
Sword Intelligence is the company's AI Care Management division, formed to help governments and health organizations scale their operations and manage patient interactions.
Kaia Health partners with employers, health plans and individuals to offer digital musculoskeletal (MSK) care as well as digital-first pulmonary rehabilitation for patients with conditions like COPD through its Kaia Breathe offering.
Following the acquisition, Sword will replace Kaia's MSK offering in the U.S. market, and current Kaia members will gain access to Sword Health's platform.
In a statement, the companies said Kaia's offering is available through Germany's digital health reimbursement pathway, and through the partnership, Sword will build on Kaia's presence in Europe.
"This acquisition will accelerate our already rapid growth in the United States while also opening Germany as a major new market, in our mission of democratizing, through AI, access to high-quality care all over the world," Virgilio Bento, founder and CEO of Sword Health, said in a statement. "We’re excited to work with Kaia's clients and partners, further expanding our presence in the U.S. market."
THE LARGER TREND
In November, Sword Health announced a national partnership with the Greek government to build an AI-enabled "front door to healthcare" for more than 10 million citizens. The government will use Sword Intelligence to create a platform to strengthen the country's National Health Information Line (1566), which helps individuals navigate their care.
That same month, Sword announced a collaboration with Desjardins Insurance, a Canadian insurance group, that would see more than 2.1 million Canadians gain access to Sword's digital physical therapy tool, Sword Thrive, and its Bloom pelvic health care tools.
The company announced it had been granted three new U.S. patents in the field of artificial intelligence, dubbed Personalized Communications in a Digital Therapy Platform, Personalized Recommendations in a Digital Therapy Platform, and Computer Vision-Driven Interactive Full-Body Motion Tracking.
Sword said in a statement that it has "filed patents for 44 distinct inventions, with a portfolio of 80 patents and patent applications across the U.S. and international jurisdictions."
In June 2025, Sword announced it garnered $40 million, bringing its total raise to $380 million and its valuation to $4 billion.
In February, health insurance provider Highmark added Sword's Virtual Pelvic Health to its offerings, allowing eligible members to access technology-powered pelvic health care support.
A month before, Sword acquired Surgery Hero in an all-equity transaction. Surgery Hero offered digital health tools aimed at improving patients' surgical outcomes. Sword integrated the UK-based company's offerings into its platform, and Surgery Hero's team joined Sword.
In 2024, Sword Health secured $130 million in a Series E round through a mix of primary and secondary sales, which brought its valuation to $3 billion.
In 2021, the company announced it raised $163 million in Series D funding, which enabled a secondary round in which it scooped up another $26 million. The funding bumped its valuation to $2 billion.
